Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price2.18 USD
Fair value2.00
Ethical score30.0/100
Our investment reviews on this name
2026-10-02Read Markdown2.18+0.0% to today
2026-07-02Read Distribution2.31-5.6% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Prospect Capital Corporation holds its Markdown at $2.18. Elevated stress, defensive posture warranted, held for 12 days.
As held on the ledger · 2026-09-24
Phase
Markdown · caution
Quantitative state
Elevated stress, defensive posture warranted, held for 12 days
Price at the screen
$2.18
Valuation
36.33 trailing · 6.23 forward price to earnings
Values screen
FAIL· score 30.0
Beta
0.79
The Workings
Five Screens, Shown in Full
Does not pass. Prohibited keyword in sector/industry: financial services
Test
Figure
Limit
What it means
Status
Business activity
Excluded
Core business clean
Prohibited keyword in sector/industry: financial services
Fail
Debt load
Excluded
Below 33%
Interest-bearing debt is of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
Excluded
Below 33%
Interest-bearing cash and securities are of assets, above the one-third limit.
Fail
Receivables
Excluded
Below 49%
Money owed to the company is of assets, above the 49% limit.
Fail
Revenue purity
Excluded
Below 5%
of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Prospect Capital does not clear the screen at the business-activity stage. It operates in conventional financial services, which the screen treats as interest-based, so the financial ratios are not the deciding factor here.
Read as at 2026-10-04. It updates when the underlying figures move, and past reads are kept below.
Fair value range in USD, drawn from the 2026-09-24 screen. The gold marker is the market price at the same screen. The price runs 8.3% above the base estimate.
Reading the gap · Both our model and the Street see limited upside at this price.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-24 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Middle market lending trips our ethical screen
Picture a lender chasing middle-market deals for yield, packaging mezzanine loans and buyouts into a listed vehicle. Prospect Capital sits in the exact sector our screen blocks outright. Financial services triggers an automatic pass, regardless of any headline multiples or apparent cheapness on paper.
The numbers do not help the case. Revenue is shrinking 12 percent, profit margins sit at minus 6 percent and return on equity is negative. Trading at 6.4 times forward earnings against a fair value below the current price leaves no margin of safety and highlights the usual cyclical trap in credit vehicles where earnings peak just as multiples compress.
High leverage and sector exposure add real downside when rates or defaults shift. The ethical block exists precisely to avoid these situations altogether. Analysis, not advice.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
PSEC trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-10-02Markdown · changed$2.18-2.2%Entry 6
The framework has shifted from distribution to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 2.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is holding around 4% above its long-term trend line with momentum reading bearish. Over the past year the shares are down 19%. Our forward projection puts the odds of a 10% gain over the next month near 11%. The street (1 analysts) rates it none, with a mean price target of $2.
2026-09-10Distribution$2.23-1.3%Entry 5
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 1.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is holding around 4% above its long-term trend line with momentum reading bearish. Over the past year the shares are down 19%. Our forward projection puts the odds of a 10% gain over the next month near 11%. The street (1 analysts) rates it none, with a mean price target of $2.
2026-08-09Distribution$2.26-2.2%Entry 4
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 2.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is holding around 4% above its long-term trend line with momentum reading bearish. Over the past year the shares are down 19%. Our forward projection puts the odds of a 10% gain over the next month near 11%. The street (1 analysts) rates it none, with a mean price target of $2.
2026-07-18Distribution$2.31+0.0%Entry 3
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns. Our composite framework grades it D, carrying a low risk profile. Technically it is holding around 4% above its long-term trend line with momentum reading bearish. Over the past year the shares are down 19%. Our forward projection puts the odds of a 10% gain over the next month near 11%. The street (1 analysts) rates it none, with a mean price target of $2.
2026-07-03Distribution$2.31+0.0%Entry 2
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns.
2026-07-02Distribution$2.31Entry 1
The framework reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows negative risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
